Goldman Sachs’ head of energy research says, “Just like we argue that silver is the poor man’s gold, gold is maybe becoming the poor man’s crypto.” He sees funds starting to switch from gold to bitcoin as inflation fears escalate, noting that “We have historically argued that crypto and gold should not cannibalize each other.” .
Goldman Sachs on Gold and Bitcoin
Damian Courvalin, Head of Energy Research at Goldman Sachs, talked about the outlook for gold and crypto in an interview with Bloomberg Thursday.
He was asked if he saw any evidence of investors using other assets, including bitcoin and cryptocurrency, to hedge against inflation other than gold. “I think it’s actually starting,” he replied, adding: “We’ve argued historically that crypto and gold do not have to cannibalize each other.”
Admitting that “it’s a fact, we’ve seen substitutions recently,” he detailed:
Just like we argue that silver is the poor man’s gold, gold is maybe becoming the poor man’s crypto.
Courvalin continued: “At this point there may be enough wealth to be allocated to both, especially, I think, as this inflation signal starts to get more pressing.”
The executive noted: “The value of crypto is its network, just like the value of oil is the fact that it’s consumed. Gold, like diamonds and art, doesn’t have that. It’s just a pure defensive asset that can outperform over a significant period of time. “
The Goldman head of Energy Research, further noted that when China banned cryptocurrencies, investors moved into gold.
Many people have switched from gold to bitcoin due to inflationary fears. In October, billionaire hedge fund manager Paul Tudor Jones said, “Obviously, there is a place for crypto. Clearly, it’s winning the race against gold at the moment … It would be my preferred one over gold at the moment.” He emphasized that “crypto is here to stay.”
The same month, JPMorgan said: “Institutional investors appear to be reverting to bitcoin, perhaps viewing it as a better hedge against inflation than gold.” The firm also doubled down on its long-term bitcoin price prediction of $146K for bitcoin as an alternative to gold.
Meanwhile, some people like both gold and bitcoin. Rich Dad Poor Dad Author Robert Kiyosaki, for example, has recommended both bitcoin and gold. In his latest prediction, he warned of a giant market crash followed by a new depression. He recommended, “Be smart: Buy, gold, silver, bitcoin.”
